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The Benefits of Gold and Precious Metal Investing Over Stocks, Bonds, Mutual Funds, and ETF’s.

There are major distinctions to investing in the stock market, mutual funds, ETF’s (exchange traded funds) and bonds versus investing in precious metals. Which ever a person favors usually depends on what type of individual they are. In either scenario there are some aspects to understand concerning all of these investments and what they entail in the long term. It is important to ascertain that having at least a portion of one’s savings or portfolio in metals is a wise idea even for the most equity bias individual. Precious metals have some strong points that simply no equity can claim. For example direct gold investments are treated as something that an individual solely owns. It is considered the individual’s personal property.  The metal can be taken anywhere in the world and exchanged or liquidated. Gold always has been deemed as having true value. It is not subject to be completely devalued or financially dismissed. The metal is an “internationally” secure investment. 

A stock is different and it functions differently than a commodity. A stock is a portion of an organization or to be frank, a bet on the performance of a company. A stock is seen as a portion of a company. If select items are inline involving a myriad of factors concerning the company the individual who owns stock the price of that stock rises. If the company is going through turmoil or is not meeting the strict guidelines via analysts the companies’ stock price can fall. Stockholders earn a profit when the companies they own stock increase their profit margin or improve their business presence. If there is a demand for the company’s services or stock the stock price rises and the person owning the stocks is said to have made profit.

A bond is actually buying or paying off a portion of debt owed by a company, state, or municipality. The person purchasing a bond is loaning or said to be buying the debt. The entity issuing/selling the bond agrees to pay it back with interest at a later time.   A bond is a purchase or a payment made for a company or a part of the government. The company or portion of the government promises to pay the individual back for paying off the debt.

A mutual fund is a group of stocks that can include commodities. what groups of stocks or what commodities the fund carries depends on the type of fund and the company offering it. An ETF is a smaller group of stocks or set of stocks that can be bought and traded very fast, like an individual stock. A mutual fund cannot be traded/sold. a Mutual fund is cashed in and can take anywhere from an hour to days. An ETF can be traded within seconds just like an individual stock.

Precious metals such as gold are known as gold are “commodities”. Commodities are physical items. When the demand for these commodities increases so does their price. The individual owning the commodity is then said to have made a profit in his or her investment if he or she owns the commodity. As the production of the metal slows the cost or value of the metal rises. Gold for example is ALWAYS in demand. It has been in demand for thousands of years. This cannot be said about any other sort of investment whether it is a stock, bond, mutual fund, ETF or annuity.

Unlike stocks and bonds precious metals maintain value in prosperous times as well as in states of a poor economy. However, stocks, mutual funds, ETFs and bonds are at the mercy of the economy. Precious metals are more at the mercy of the production, or amount located within the ground. Precious metals have increased in value for thousands of years. Stocks, bonds, and ETF’s are subject to dissolving or losing almost all value at any given point and time.  Precious metals are immune to such an occurrence.

Gold and pure precious metals are not affected by inflation. Their value remains the same regardless of how high or how low the current rate of inflation is. Lastly, and possibly the most attractive part concerning precious metal investments is the fact that the person who invests directly (direct ownership) can physically have the asset in his or her possession to take wherever they choose. It is a tangible item that can be taken with the individual to sell/cash in  anywhere in the world.  Gold and a few other metals will always hold monetary value over any other type of currency. No stock, bond, mutual fund or ETF has this characteristic.

Smart investors choose to invest at least a portion of their portfolio in precious metals for the aforementioned reasons.  Our club suggests Regal Assets LLC for gold and precious metal investing. The company specializes in Gold retirement accounts, Gold IRA’s and offers fantastic packages in buying and selling metals.  Regal Assets LLC’s reputation has been more than admirable over the years. The firm offers premium quality services in their investment protocol yet their rates are actually pretty reasonable.  Reviews for the company from their personal clients as well as  third parties have been been consistently strong. To visit Regal Assets LLC select: Regal Assets

 

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